Audit

KPMG SETS UP IFRS INSTITUTENew York — KPMG has established the IFRS Institute to address the needs of companies, investors and academics affected by the transition to International Financial Reporting Standards.

The Institute of International Finance, a global association of financial institutions, has moved to clarify its position on fair value accounting after word leaked out that it wanted to loosen the standards, provoking an outcry.

The American Institute of CPAs has begun publicizing the revised set of peer review standards that it quietly issued earlier this year.The new standards are designed to be more principles-based and less of a checklist-based process than older peer review standards. A key difference is the elimination of letters of comment and the old three-tier system of unmodified, modified and adverse grades given to firms by reviewers. The new standards require a simple grade of “pass,” “pass with deficiencies” or “fail.”

The May 2008 issue of The Journal of Accountancy ran opinion pieces on the role of accounting in the subprime crisis and subsequent bursting of the credit market bubble. Paul Miller was invited to comment on a controversial claim that mark-to-market practices made things worse. The critics claim that GAAP practices weakened institutions that invested in collateralized debt obligations by revealing large losses when the CDOs’ market values evaporated.They assert that financial statements would better serve the public interest if managers can keep unrealized losses (which they consider to be unreal) out of their financial statements. By a huge leap of ego, they conclude that they and everyone else would be better off if nobody is aware that those losses had occurred. After all, everyone knows they aren’t real because they are always followed by gains. Except when they aren’t, of course.

The Public Company Accounting Oversight Board issued the latest inspection report of Deloitte & Touche, noting problems with nine audits performed by the firm last year.

The MetLife Mature Market Institute has available to consumers, especially those who are not in "traditional families," some tips on how to make the right choices in preparing for retirement, notwithstanding the challenges they face.

The Securities and Exchange Commission has charged a former Ernst & Young partner, an investment banker and her father with insider trading involving information about potential M&A transactions.

The U.S. Financial Accounting Standards Board and the International Accounting Standards Board said they are seeking public comment on two documents that are part of their joint project for developing an improved conceptual framework for future accounting standards.

CPA firm Marcum & Kliegman is expanding from New York to New Jersey by merging with RosenfarbWinters, a specialist in forensic accounting.

Deloitte Touche Tohmatsu's global aggregate member firm revenue is projected to grow from $23.1 billion in fiscal year 2007 to over $27 billion in fiscal year 2008.

XBRL International has appointed Gilles Maguet as secretary general of XBRL Europe, giving him the job of promoting the adoption of the Extensible Business Reporting Language in Europe.

The AICPA is a very complicated and unique entity that continues to amaze me. In large part, it is because of the many roles that it performs with regard to the CPA profession and the significant impact it has on individual CPAs, firms, and companies.

The Financial Accounting Standards Board has issued FASB Statement No. 163, "Accounting for Financial Guarantee Insurance Contracts."

As economic indicators continue to trend downward, Baby Boomers are feeling less confident that their retirement savings will see them through retirement. So says the results of a new research by Longevity Alliance that was conducted by Harris Interactive. Interestingly enough, the survey shows that few of these Baby Boomers really know what steps to take next. According to Longevity, 56 percent of all Boomers (adults 44-62) claim they are less confident than they were only three months ago that their retirement savings will last them through retirement. In fact, of those with such savings, seven in 10 say that were “less confident” overall, with 35 percent being “somewhat less confident,” and 36 percent indicating that they were “much less confident.” Despite the concern, few Boomers have done anything—or plan to do anything—about such flagging retirement savings. Longevity shows that only two out of five with such savings have changed or plan to change their retirement savings as a direct result of the current economic conditions. In fact, of those with such savings who have made a change (or plan to), some 43 percent say they would seek the advice of a financial advisor or retirement planning professional. Hooray! There’s hope alive here. Longevity president Steve Zaleznick says that the Boomers “know the train is coming, but they’re frozen on the tracks.” Unfortunately, he adds, too many are unsure of the best steps to take to guarantee that their money lasts. “In uncertain economic times like these, knowing what to do and when to act is critical; and seeking the advice of a professional can be extremely reassuring.” Also of interest were the distinct differences in attitudes about retirement between men and women. Among adults of all ages, men were more likely to have retirement savings although female Boomers are much more likely to say they have less confidence in their savings. Zaleznick notes that the survey shows clear consumer preferences among Boomers who plan to make changes in their retirement savings. Seeking the advice of a financial advisor or retirement planning professional was the top response followed by a reallocation of funds from stocks to more conservative investments. Other options were investing in value-priced stocks, buying long-term care insurance, and purchasing an annuity. Longevity has a Web site where you can tap into its “Five Tips for Retirement Planning” (www.longevityalliance.com). Boomers can also take the “Longevity Ready” quiz to get a better understanding of their personal preferences and planning style for a longer life.

Nonprofit accounting software developer Kintera said it has received notice of a possible delisting from Nasdaq after falling below the required threshold of stockholders' equity.

U.S. companies need more preparation and training before International Financial Reporting Standards can be adopted, according to a survey of CFOs and other senior finance professionals by Deloitte.

The U.S. Small Business Administration said that homeowners, renters, nonprofit organizations and businesses have one more month to submit disaster loan applications for damage caused by the severe storms and tornadoes on April 4.

A week after proposing requirements for public companies to start filing their financial statements with interactive data tags, the Securities and Exchange Commission wants mutual fund companies to begin filing risk and return information using the technology.

The Financial Accounting Foundation has tapped Teresa S. Polley as its new president and chief operating officer.

The Securities and Exchange Commission has broadened financing opportunities for small businesses by adopting a rule amendment under the Investment Company Act.